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Global Economic Crisis: Enter the Dragon

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  • Dinda, Soumyananda

Abstract

China is emerging as a giant in Asia as well as in the world economy. Now China is a major economic hub in the world. China has double role in international trade – first it attracts inputs from the East and South East Asia region and secondly pushes the products in international market with a comparative advantage in price competition. This is possible because China is economically integrated with region and the world as a whole. This paper attempts to measure the economic integration issue. The economic integration can be measured as the degree of association among nations, i.e., correlation. The paper observed a strong integration in the region in terms of tariff cut for reducing trade barriers and promote the smooth flow of trade. Co-integration technique provides the economic integration of China’s export to the US and its import from East and South East Asia region.

Suggested Citation

  • Dinda, Soumyananda, 2011. "Global Economic Crisis: Enter the Dragon," MPRA Paper 93855, University Library of Munich, Germany, revised 2014.
    • Handle: RePEc:pra:mprapa:93855
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Economic Integration; Co-integration; Correlation; Double Engine of Growth; Export; Import.;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • F2 - International Economics - - International Factor Movements and International Business

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